APA and MAP statistics

See statistics for our advance pricing arrangements (APA) and mutual agreement procedure (MAP) programs for the last 5 income years:

• Key APA statistics
• Key MAP statistics

Key APA statistics for each income year (at 30 June)

APA program inventory

Agreed APAs have steadily decreased from 2019–20, but this is largely offset by a corresponding increase in APAs in progress across the same years. This was primarily driven by the receipt of several bilateral APA renewal requests following expiry of the prior APA. Program inventory has remained relatively constant since 2018–19.

Table 1: Agreed APAs, 2017–18 to 2021–22

Active APAs (signed and in effect	2017–18	2018–19	2019–20	2020–21	2021–22
Multilateral	1	1	0	0	1
Bilateral	55	58	58	46	34
Unilateral	54	57	59	55	54
Total	110	116	117	101	89

This data is displayed as a line graph in Figure 1 below.

Figure 1: Agreed APAs, 2017–18 to 2021–22

APAs in progress

The significant differential in unilateral APAs in progress in 2017–18 year was driven by increased demand as a result of multinational anti-avoidance legislation (MAAL) risk reviews.

Table 2: APAs in progress, 2017–18 to 2021–22

APAs in progress	2017–18	2018–19	2019–20	2020–21	2021–22
Multilateral	4	3	2	2	3
Bilateral	46	38	46	51	60
Unilateral	56	36	27	30	27
Total	106	77	75	83	90

This data is displayed as a line graph in Figure 2 below.

Figure 2: APAs in progress, 2017–18 to 2021–22

APAs completed

Total APAs completed each financial year has been relatively consistent, aside from 2020–21 which was negatively impacted by COVID-19 The decrease in completed APAs is attributable to a combination of factors stemming from COVID-19, including but not limited to:

• clients delaying engagement with us where their business operations were affected by restrictions or measures to safeguard employees’ safety
• our treaty partners facing similar challenges, in addition to travel restrictions leading to some delays in bilateral negotiations.

Table 3: APAs completed (new and renewals), 2017–18 to 2021–22

APA	2017–18	2018–19	2019–20	2020–21	2021–22	Average
APA in place	110	116	117	101	89	107
APAs completed (new)	9	14	11	6	2	8.4
APAs completed (renewal)	15	17	16	7	23	15.6
Total	24	31	27	13	25	24

This data is displayed as a bar chart in Figure 3 below.

Figure 3: APAs completed (new and renewals), 2017–18 to 2021–22

Table 4: APAs completed (by type), 2017–18 to 2021–22

APA	2017–18	2018–19	2019–20	2020–21	2021–22	Average
Unilateral	11	17	15	6	8	11.4
Bilateral	12	14	12	7	16	12.2
Multilateral	1	0	0	0	1	0.4
Total	24	31	27	13	25	24

This data is displayed as a bar chart in Figure 4 below.

Figure 4: APAs completed (by type), 2017–18 to 2021–22

APA average cycle times

For the 3 years from 2018–19 to 2020–21, an upward trend in cycle times for both unilateral and bilateral APAs was emerging. This trend reversed in 2021–22, where the average cycle times decreased. Average cycle time for the completed cases in the 2022 year was approximately 25 months across both unliteral APAs (UAPA) and bilateral BPAs (BAPA).

In 2020–21, the average time to complete bilateral and unilateral APAs was higher than usual due to several cases being ‘placed on hold’ to address collateral issues. With the small number of cases finalised in this particular year, the overall average cycle times were adversely affected. For those instances where complex collateral issues are identified, APA cases will cease while other compliance activity is being undertaken.

In 2021–22, we completed one multilateral APA which involved agreements with four different jurisdictions. The time taken to complete the negotiation was longer than what is generally expected for unilateral and bilateral APAs because of the challenging coordination process.

Table 5: APA average cycle time (months), 2017–18 to 2021–22

APA	2017–18	2018–19	2019–20	2020–21	2021–22
Unilateral	27.79	23.27	28.92	32.92	29.41
Bilateral	35.50	31.67	36.85	50.26	23.55
Multilateral	61.60	61.60	0	0	93.43

This data is displayed as a bar chart in Figure 5 below.

Figure 5: APA average cycle time (months), 2017–18 to 2021–22

Average bilateral APA cycle times at the jurisdictional level are influenced by the size of the APA program inventory with our treaty partner and at times, factors outside the control of the Australian Competent Authority.

Table 6: BAPA average cycle time (months), 2017–18 to 2021–22

Jurisdiction	Average cycle time (months)
Japan	18.3
Switzerland	22.4
New Zealand	24.1
Singapore	25.6
United States	34.0
United Kingdom	41.4
Other treaty partners (de minimis rule applies)	37.0

This data is displayed as a bar chart in Figure 6 below.

Figure 6: BAPA average cycle time (months), 2017–18 to 2021–22

APA requests

Over the last 5 years, there has been an upward trend in bilateral APA requests and a downward trend in unilateral APA requests. In 2021–22, 48 APA requests were received. The primary driver for this increase was a significant number of bilateral APA renewal requests from one treaty partner. This is a deliberate strategy between Australia and our treaty partner to more efficiently conclude APAs, providing earlier certainty and an enhanced client experience. New bilateral APA requests are also trending up. This indicates taxpayers are seeking to not only attain certainty on their pricing arrangements but increasingly, also seeking to mitigate the risk of double taxation.

The root cause for the trend down in unilateral APAs is the number of new unilateral APA requests received in 2017–18 and to a lesser extent, 2018–19. As previously noted, the large number of unilateral APA requests in those years was a result of MAAL risk reviews. New unilateral APA requests have fallen from 2019–20 but not as pronounced as from 2017–18 and are expected to flatten out moving forward.

Excluding 2021–22 bilateral APA renewals, the trend line for both unilateral and bilateral APAs is relatively flat. This indicates consistent year on year demand from taxpayers seeking to renew APAs and is reflective of the value taxpayers see in the APA program.

Table 7: Total APAs received by type, 2017–18 to 2021–22

APA	2017–18	2018–19	2019–20	2020–21	2021–22
Unilateral	22	12	10	12	12
Bilateral	15	12	21	14	33
Multilateral	1	0	0	0	3
Total	38	24	31	26	48

This data is displayed as a bar chart in Figure 7 below.

Figure 7: Total APAs received by type, 2017–18 to 2021–22

Table 8: New APAs received by type, 2017–18 to 2021–22

APA	2017–18	2018–19	2019–20	2020–21	2021–22
Unilateral	11	6	4	3	2
Bilateral	3	6	9	4	5
Multilateral	1	0	0	0	2

This data is displayed as a bar chart in Figure 8 below.

Figure 8: New APAs received by type, 2017–18 to 2021–22

Table 9: Renewal APAs received by type, 2017–18 to 2021–22

APA	2017–18	2018–19	2019–20	2020–21	2021–22
Unilateral	12	6	6	9	10
Bilateral	11	6	12	10	28
Multilateral	0	0	0	0	1

This data is displayed as a bar chart in Figure 9 below.

Figure 9: Renewal APAs received by type, 2017–18 to 2021–22

APAs by industry segment

The industry mix in the APA program over the last 2 years is relatively constant. Consistent with the nature of the Australian economy being an importer of goods and services, the bulk of APAs are in the wholesale, retail and services industry. These taxpayers are predominantly in the Top 1,000 population.

The Top 100 population segment is dominated by taxpayers from the mining, energy and water industry, and the banking, finance & investment, insurance and super funds industry.

Table 10: APAs by industry segment, 2020–21

Industry	2020–21
Banking, finance & investment, insurance, super funds	13
Mining, energy and water	28
Manufacturing construction and agriculture	32
Wholesale, retail and services	109
Other	1
Total	183

This data is displayed by percentage in Figure 10 below.

Figure 10: APAs by industry segment (%), 2020–21

Table 11: APAs by industry segment, 2021–22

Industry	2021–22
Banking, finance & investment, insurance, super funds	17
Mining, energy and water	22
Manufacturing construction and agriculture	30
Wholesale, retail and services	110
Other	0
Total	179

This data is displayed by percentage in Figure 11 below.

Figure 11: APAs by industry segment (%), 2021–22

Key MAP statistics for each income year (at 30 June)

Total mutual agreement procedure (MAP) cases continue to trend up from 2018–19. This is from a combination of increasing MAP requests and increasing average cycle times, primarily from our MAP cases with transfer pricing issues. Other than 2019–20, transfer pricing MAP cases generally make up more than 50% of the MAP program.

The increase in non-transfer pricing cases from 2019–20 is due to an increase in dual residency MAP requests, emanating from the MLI entering into force in Australia from 1 January 2019. Approximately 65% of our total inventory are inbound MAP cases.

As of 30 June 2022, transfer pricing MAP cases make up 59% of program inventory with 75% of the MAP program coming from either transfer pricing or dual residence issues.

Table 12: Active MAP cases, 2017–18 to 2021–22

Type	2017–18	2018–19	2019–20	2020–21	2021–22
Transfer pricing MAP cases	26	15	21	29	36
Non-transfer pricing MAP cases	14	13	25	18	25
Total MAP cases	40	28	46	47	61

This data is displayed as a bar chart in Figure 12 below.

Figure 12: Active MAP cases, 2017–18 to 2021–22

Table 13: MAP case inventory by treaty article, 30 June 2022

Treaty article	2021–22
Article 9 – Associated enterprises	36
Article 4 – Dual residency	10
Article 7 – Business profits	6
Article 4 – Residency	4
Article 15 –Employment income	2
Article 18 – Pensions	2
Article 20 – Students	1
Total	61

This data is displayed by percentage in Figure 13 below.

Figure 13: MAP case inventory by treaty article, 30 June 2022

Table 14: New MAP cases, 2017–18 to 2021–22

MAP cases	2017–18	2018–19	2019–20	2020–21	2021–22
Transfer pricing MAP cases	14	5	13	11	10
Non-transfer pricing MAP cases	9	13	25	22	30
Total MAP cases	23	18	38	33	40

This data is displayed as a bar chart in Figure 14 below.

Figure 14: New MAP cases, 2017–18 to 2021–22

Table 15: New MAP requests by treaty article, 2021–22

Treaty article type	2021–22
Article 4 – Dual residency	21
Article 9 – Associated enterprises	10
Article 4 – Residency	4
Article 18 – Pensions	3
Article 15 –Employment income	2

This data is displayed by percentage in Figure 15 below.

Figure 15: New MAP requests by treaty article (%), 2021–22

Total MAP requests continue to increase annually from 2018–19. This is largely driven by high volumes of dual residency determinations resulting from the MLI requirements. These dual resident cases are mostly with New Zealand and United Kingdom. Transfer pricing MAP requests remain relatively steady.

Similar to MAP program inventory as at the end of the 2021–22 year, 75% of the new requests received relate to transfer pricing or dual residence tax treaty issues. However, unlike the breakup of the MAP program inventory, more than 50% of new MAP requests in the 2022 year relate to dual residence tax treaty issues.

Table 16: Completed MAP cases, 2017–18 to 2021–22

Type of MAP case	2017–18	2018–19	2019–20	2020–21	2021–22
Transfer pricing	6	16	7	3	3
Non-transfer pricing	11	14	13	29	23
Total	17	30	20	32	26

This data is displayed as a bar chart in Figure 16 below.

Figure 16: Completed MAP cases, 2017–18 to 2021–22

MAP average cycle times in months

Our MAP inventory continues to climb as we historically receive more MAP requests in any given year than we close cases. The large number of non-transfer pricing MAP cases closed in the last 2 years are dual residency MAP requests. These are often less complex and thus are determined in a far quicker timeframe than other MAP matters, particularly transfer pricing.

Table 17: MAP average cycles times (months), 2017–18 to 2021–22

Type of MAP case	2017–18	2018–19	2019–20	2020–21	2021–22
Transfer pricing	10.59	25.45	32.78	41.79	69.99
Non-transfer pricing	10.59	17.24	15.39	17.79	7.56
Total	10.59	21.62	16.15	11.62	14.76

This data is displayed as a bar chart in Figure 17 below.

Figure 17: MAP average cycle times (months), 2017–18 to 2021–22

MAP 5-year average cycle time

Transfer pricing MAP completions have declined in recent years but of note for the 2021–22 year, a number of MAP cases were agreed in principle with our treaty partners but were not administratively finalised by the end of the financial year. These will be reflected in the 2022–23 completions.

The average cycle time for transfer pricing MAP cases has trended upwards from 2017–18. These cases are generally complex and require greater resource investment and negotiation with our treaty partners. The average cycle time is also adversely affected by some outlier cases.

This is noticeable in 2021, when a 57-month aged case was successfully closed, and in 2022 when our oldest case (173 months) was closed and skewed the average monthly cycle times. Both cases experienced long delays in response times from our treaty partners. We believe the introduction of mandatory binding arbitration into many of our tax treaties via implementation of the MLI will reduce this occurrence moving forward. When we exclude the oldest case closed, we saw that the remaining transfer pricing cases were closed within the OECD recommended 24-month cycle for 2021–22.

Average MAP case cycle times at the jurisdictional level are influenced by a number of factors. Individual cases can skew average cycle times on small inventory, and some cycle times are impacted by factors outside the control of the Australian Competent Authority.

Table 18: Transfer pricing MAP case 5-year average cycle time

Treaty partner	Average cycle times (months)
New Zealand	14.8
USA	16.2
Germany	29.9
Singapore	32.2
India	38.8
France	45.1
Other treaty partners (de minimis rule applies)	20.2
Grand total	26.0

This data is displayed as a bar chart in Figure 18 below.

Figure 18: Transfer pricing MAP case 5-year average cycle time

Table 19: Non-transfer pricing MAP case 5-year average cycle time

Treaty partner	Average cycle times (months)
New Zealand	6.3
United Kingdom	8.4
Netherlands	14.0
Germany	14.8
Other treaty partners (de minimis rule applies)	21.0
Grand total	11.8

This data is displayed as a bar chart in Figure 19 below.

Figure 19: Non-transfer pricing MAP case 5-year average cycle time

An overview of advance pricing arrangements (APAs) and specific information for taxpayers.